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Funds in agriculture? Q for Dunstoh?
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Maybe I shold have said lower rather than low. It's definitely not what I think at the moment but what I hear from a lot of people talking about a low risk market investment portfolio.
"You want lowish risk so should have a high ratio invested in the UK".
p.s. currency fluctuations could also lower the risk if your base is high at the time. Also if you are investing in large companies they will generally have international exposure so will be exposed to currencies (and how good is thei arbitrage dept?).0 -
I think DunstonH is a little fixated by this "China could drop 70%" thing.
I'm not fixated by it. I am however not using potential for returns to mask the level of risk taken.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Sure Hong Kong/ China is more volatile than the Western markets. Opinion is divided and the Chinese markets could decine by maybe 20% but some think that the bull run is set to contine up to the olympics.
That's a 20% drop in addition to the 20% drop in Gartmore China Opportunities over the last two months, right?
So long as you didn't buy at the start and don't have to sell now that's OK. But that's the nature of market risk: whether you're a forced seller or not. If not, you can often wait for a recovery, though Japan hasn't managed that in the last decade and the same seems likely to be so for 2000 technology as a whole, so that could be quite bad news.
You really need to read about and remember the 1950 to 1990 Japanese economic miracle and decades plus drop to one quarter of the miraculous prices that Japan has suffered since then. High valued Japanese companies were provoking protests as they bought up prized US and other companies and other icons. The same sort of thing that the Chinese businesses are now getting involved in. The more recent example is the tech boom, with AOL buying Time Warner being perhaps the classic example of that overvaluation period.
This stuff happens routinely, just like the total or near total loss of investor's money in a FTSE 100 company that happens about once a decade and might surprise people who thought the UK was safe.
dunstonh is focusing on this stuff because it really happens and you need to protect yourself from it via diversified holdings and not get more and more concentrated into the miraculous market of the day.0 -
That's a 20% drop in addition to the 20% drop in Gartmore China Opportunities over the last two months, right?
So long as you didn't buy at the start and don't have to sell now that's OK. But that's the nature of market risk: whether you're a forced seller or not. If not, you can often wait for a recovery, though Japan hasn't managed that in the last decade and the same seems likely to be so for 2000 technology as a whole, so that could be quite bad news.
You really need to read about and remember the 1950 to 1990 Japanese economic miracle and decades plus drop to one quarter of the miraculous prices that Japan has suffered since then. High valued Japanese companies were provoking protests as they bought up prized US and other companies and other icons. The same sort of thing that the Chinese businesses are now getting involved in. The more recent example is the tech boom, with AOL buying Time Warner being perhaps the classic example of that overvaluation period.
This stuff happens routinely, just like the total or near total loss of investor's money in a FTSE 100 company that happens about once a decade and might surprise people who thought the UK was safe.
dunstonh is focusing on this stuff because it really happens and you need to protect yourself from it via diversified holdings and not get more and more concentrated into the miraculous market of the day.
I feel quite comfortable with my current portfolio. I pulled out of China and switched to global funds. My current portfolio is approximately:
35% Neptune Global Equity
35% Artemis Global Growth
15% Gartmore Global Focus
15% Jupiter Global Managed0
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